News Feed Item

Northern Frontier Corp. Announces its Fourth Quarter and Fiscal 2013 Financial Results, its 2014 Capital Expenditure Budget and Declares its First Dividend

CALGARY, March 20, 2014 /CNW/ - Northern Frontier Corp. (TSX-V: FFF) (the "Corporation" or "Northern Frontier") is pleased to announce its fourth quarter and fiscal 2013 financial results, its 2014 capital expenditure budget and declaration of its first dividend.

Selected Financial Highlights

(in 000's CAD, except as noted) 3 months ended
Dec 31, 2013
13 months ended
Dec 31, 2013
12 months ended
Dec 31, 2013 (1)
      (pro forma)
Revenue $   14,522 $  15,017 $  67,167
Gross Profit 2,955 3,077 17,570
   as a % of revenue 20.3% 20.5% 26.2%
EBITDA (2) 2,093 1,867 14,753 
   per share 
   as a % of revenue
$       0.26
$      0.71
$      1.32
Net loss and comprehensive loss (409) (1,967) $    1,732
Earnings (loss) per share - basic and diluted $    (0.05) $   (0.74) $      0.16
Funded debt (3) 32,723 32,723  
Weighted average common shares outstanding (4) 8,126,304 2,643,524 11,160,609
Common shares outstanding (4) 11,160,609 11,160,609 11,160,609
Common share purchase warrants outstanding 5,115,639 5,115,639  

(1)      These amounts represent management's pro forma estimate of Northern Frontier's financial results if it had completed its business combination on January 1, 2013 rather than the actual date of September 27, 2013.
(2)      EBITDA (earnings before qualifying transaction costs, finance costs, taxes, depreciation and amortization, gain/loss on disposal of property and equipment and share-based compensation) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".
(3)      Funded debt (loans and borrowings before unamortized debt issue costs and obligations under finance lease less cash and cash equivalents) is not a recognized measure under IFRS (defined herein). Refer to "Non-GAAP Measures".  
(4)      Amounts have been adjusted for the effect of the 1 for 15 common share consolidation completed on February 15, 2013.


Northern Frontier completed its first business acquisition in September 2013, by purchasing a civil and logistics services provider located within the steam assisted gravity drainage ("SAGD") Oilsands market of northeastern Alberta for $54.3 million. Central to our strategy is to build on a company with a solid foundation, through providing an expanding array of industrial services to the long-term asset base being developed in the resource sectors of western Canada. This acquisition has provided that platform, with a substantial asset base, solid customer relationships and a physical location proximate to substantial future growth opportunities within the SAGD market.

The company also completed two equity raises for combined net proceeds of $28.6 million to support growth through strengthening its balance sheet and deploying capital in anticipation of 2014 demands. As part of the second capital raise, the board of directors implemented a dividend policy to support a long-term cost of capital that will accelerate future acquisitions and growth of the business.

The fourth quarter of 2013 (post-platform acquisition) was focused on implementing financial systems and capital structure that would facilitate the transition of the business from a privately-held organization to one that will meet the expectations of the public markets.

Northern Frontier exited fiscal 2013 with a pro forma EBITDA of $14.8 million. The stand-alone trailing twelve month EBITDA of our platform acquisition was $16.6 million, exceeding initial expectations when we agreed to acquire the business. Overall, Northern Frontier's fiscal 2013 performance and post-platform acquisition financial results (effectively the fourth quarter of 2013) were relatively consistent with expectations. Financial results in the fourth quarter of 2013 were impacted by wet weather in early October, a deferral of a couple of client projects and an extended holiday break at the end of the quarter. This resulted in an increase in labor costs as a percentage of revenue and a decline in camp utilization. Overall, management is satisfied with the earnings capacity it acquired through the platform acquisition and expects to increase the earnings capacity of the business through fiscal 2014.


Management expects the first half of fiscal 2014 to have moderate activity levels compared to fiscal 2013. Demand for services is currently expected to accelerate in the second half of fiscal 2014, driven by new construction and successful production results from existing facilities within the SAGD market that the Corporation participates in. Northern Frontier also expects to see growth from its capital expenditures made in the fourth quarter of 2013, including an expansion to its camp bed capacity driven by expected employee growth and equipment fleet. In addition, the Corporation expects deployment of capital into its logistics strategy in early 2014 to start contributing to earnings growth in the second half of fiscal 2014.

2014 Capital Expenditure Budget

For fiscal 2014, the Corporation's net capital expenditure program is $14.3 million, allocated as follows:

(in 000's CAD)   Growth Sustaining Total
Automotive   $           - $      355 $      355
Construction and excavating   5,375 3,020 8,395
Logistics   6,480 - 6,480
    11,855 3,375 15,230
Estimated proceeds on disposal of equipment     (950) (950)
Capital additions, net   $  11,855 $   2,425 $  14,280

Dividend Declared

Northern Frontier has declared its first quarterly dividend of $0.065 per common share, payable on April 15, 2014 to holders of record on April 3, 2014 (ex-dividend April 1, 2014). This represents an annual yield of 7.1% based on the March 20, 2014 closing price of $3.65 per common share.

Additional Information

Northern Frontier's audited consolidated financial statements for the 13 months ended December 31, 2013 and 12 months ended November 30, 2012 and fiscal 2013 management discussion and analysis ("MD&A") have been filed with the Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com.

Conference call

Management of Northern Frontier will hold a conference call on Friday, March 21, 2014, at 9:30 a.m. Calgary / 11:30 a.m. Toronto time.  The call will feature remarks by Chris Yellowega, President and CEO and Monty Balderston, Executive Vice President and CFO regarding the financial results.

Conference dial-in instructions are as follows:

Toronto: 416-764-8682
North America: 888-390-0549
Conference ID: 95520669

A replay of the call will be available 24 hours after the event until 11:59 p.m. EST on March 28, 2014. To access the archived conference call, please dial 1-888-390-0541 and enter passcode 520669.

About Northern Frontier Corp.

Northern Frontier's strategic objective is to create a large industrial and environmental services business through a buy and build growth strategy. Currently, the Corporation provides civil construction and excavation services to the industrial industry, primarily in the in situ Oilsands region south of Fort McMurray, Alberta.  Through providing these services to large industrial customers in the steam assisted gravity drainage ("SAGD") region of northeastern Alberta, the Corporation focuses on the ongoing demand for services to support operating facilities, sustaining capital expenditures to maintain production levels of those facilities and the development of new production capacity.

The Corporation's common shares and common share purchase warrants are listed on the TSX Venture Exchange under the trading symbol "FFF" and "FFF.WT", respectively.

Reader Advisory

Forward-Looking Statements

This news release contains forward-looking information and forward-looking statements based on certain expectations, projections and assumptions. Certain information in this news release contains forward-looking statements including management's assessment of Northern Frontier's future operations, business prospects and opportunities, management's future expectations regarding the financial performance of the Corporation, forecasted 2014 capital expenditures of the Corporation and expected payment of dividends declared. With respect to the forward-looking statements contained in this news release, Northern Frontier has made assumptions, regarding among other things: that Northern Frontier will continue to conduct its operations in a manner consistent with past operations. Although Northern Frontier believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Northern Frontier's control including, without limitation, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect Northern Frontier's operations and financial results are included in Northern Frontier's MD&A and other reports on file with Canadian securities regulatory authorities and may be accessed under the Corporation's profile on SEDAR at www.sedar.com. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Northern Frontier does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

This information is subject to a number of risks and uncertainties, many of which are beyond the Corporation's control. Users of this information are cautioned that actual results may differ materially. For additional information refer to the "Advisory Regarding Forward-Looking Statements" section of the Corporation's MD&A.

Non-GAAP Measures

Selected financial information for the three and 13 month periods ended December 31, 2013 is set out above and includes the following measures that are not recognized under International Financial Reporting Standards ("IFRS") and are non-generally accepted accounting principles ("non-GAAP") measures: EBITDA and Funded Debt. This information should be read in conjunction with the consolidated financial statements for the three and 13 month periods ended December 31, 2013 and the Corporation's MD&A available under the Corporation's profile on SEDAR at www.sedar.com. Further information regarding these non-GAAP measures is contained in the Corporation's MD&A.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


SOURCE Northern Frontier Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
DevOps theory promotes a culture of continuous improvement built on collaboration, empowerment, systems thinking, and feedback loops. But how do you collaborate effectively across the traditional silos? How can you make decisions without system-wide visibility? How can you see the whole system when it is spread across teams and locations? How do you close feedback loops across teams and activities delivering complex multi-tier, cloud, container, serverless, and/or API-based services?
Today every business relies on software to drive the innovation necessary for a competitive edge in the Application Economy. This is why collaboration between development and operations, or DevOps, has become IT’s number one priority. Whether you are in Dev or Ops, understanding how to implement a DevOps strategy can deliver faster development cycles, improved software quality, reduced deployment times and overall better experiences for your customers.
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...
Donna Yasay, President of HomeGrid Forum, today discussed with a panel of technology peers how certification programs are at the forefront of interoperability, and the answer for vendors looking to keep up with today's growing industry for smart home innovation. "To ensure multi-vendor interoperability, accredited industry certification programs should be used for every product to provide credibility and quality assurance for retail and carrier based customers looking to add ever increasing num...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his session at @DevOpsSummit 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will show how customers are able to achieve a level of transparency that enables everyon...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.